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Cash management is a term used of how financial managers manage money. It a
responsibility for financial manager to run an effective organization and the task is to
maximize an organization value, and the value is determined on the cash flow. Cash
management is a significant concept in success of an organization. If cash management is
not a significant value of an organization, it will undermine the organization short- term
stability and its long-term continuation. Cash management in handled though the
cash-flow cycle. This cycle relies on when and how funds are collected as well as paid out
and how fast the banking system is (Block and Hirt, 2004). For instance if a supplier
cashes a check too soon, and the bank is slow to process checks from customers, there may
be a negative balance of cash in the company account. Cash management requires
immediate, constant, and responsive decision making. Efficient cash management process
is to manage the intense economic world of competition and instability. Organization
manages capital, business risk, monitor cost, and inventory; which are cash management
techniques to assist financial managers in success of the organization. For instance,
working capital management involves the financing and management of the current assets
of the company. The financial executives devote more time to working capital
management than to any other activity (Block & Hirt, 2005). Financial managers must be
knowledgeable in techniques to execute effective ways to manage cash, and efficient ways
to obtain cash. Techniques that can be used to have effective cash management are short-
